euro adhoc: S&T System Integration&Technology Distribution AG /
Quarterly or Semiannual Financial Statements
S&T announces second
quarter and first half-year results for 2003 (E)
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
- Total sales up 6% in second quarter - Solutions business triples in second quarter (+ 186%) - EBITDA falls by 4% in the first half-year
23 July 2003, Vienna, Austria - S&T System Integration & Technology
Distribution AG ("S&T"; Vienna Stock Exchange: SNT, NASDAQ Europe:
SNTS, OTC: STSQY) today announced results for the second quarter and
first half-year ending 30 June 2003.The consistent continuation of S&T's strategy of focusing on high quality, mission critical IT infrastructure and related services led to a significant increase in this area of business in the second quarter. Sales in the Business Solutions unit rose to EUR 8.5 million in the 2nd quarter of 2003 from just under EUR 3 million in the same period in 2002. This was largely due to the successful development of the SAP-related business in the Adriatic region and the first-time consolidation of the subsidiaries acquired from Fujitsu Services in Poland, the Czech Republic, Hungary, Romania, Greece and Malta. The planned takeover of the Fujitsu Services subsidiary in Slovakia was not realized after a thorough due diligence.
As announced on 16 July 2003 management has decided to apply an impairment adjustment of EUR 1.1 million (50% of remaining goodwill) due to the continued underperformance of the Turkish operation. Together with the operating loss in Turkey and costs in connection with the Fujitsu Services acquisition, EBIT for the second quarter was minus EUR 1.6 million.
Business in Turkey was difficult, in particular due to the volatile economic situation and tense international relations during and after the war in Iraq. The national budget was only approved on 30 June 2003, resulting in a far reaching stop to public spending in the first six months.
On 30 June 2003 the S&T Group had a total workforce of 1,214 people.
CONSOLIDATED INCOME STATEMENTS for the three months period April 01 to June 30, 2003 and 2002 (consolidated, unaudited) in EUR 1,000
~
Sales (in EUR 000)
Q2/2003 Q2/2002 +/-%
BS (Business Solutions) 8.545 2.987 186%
ES (Enterprise Systems) 23.387 24.715 -5%
CS (Customer Support) 6.451 6.961 -7%
MS (Managed Services) 671 0
MED (Medical Systems) 2.280 2.487 -8%
ITD (Information Technology
Distribution)* 0 1.750 -
Total sales 41.334 38.900 6%
Other Income 857 501 71,1%
Total Revenues 42.191 39.401 7,1%
COGS -29.201 -28.588 2,1%
Staff -7.942 -5.255 51,1%
Other Operating Expenses -4.085 -3.973 2,8%
EBITDA 963 1.585 -39,2%
Depreciation and amortisation -808 -621 30,1%
EBITA 155 964 -83,9%
Impairment adjustment
goodwill Turkey -1.100
Amortisation of goodwill -662 -529 25,1%
Profit from Operations/EBIT -1.607 435 -~
~ CONSOLIDATED INCOME STATEMENT (unaudited) in EUR 1,000 for the six months period ending June 30, 2003 and 2002
Sales (in EUR 000) 1-6/2003 1-6/2002 +/- BS (Business Solutions) 13.017 7.264 79% ES (Enterprise Systems) 55.750 43.795 27% CS (Customer Support) 11.988 12.443 -4% MS (Managed Services) 1.249 0 MED (Medical Systems) 4.404 5.549 -21% ITD (Information Technology Distribution) 0 3.401 - Total sales 86.408 72.452 19% Other Income 1.305 925 41,1% Total Revenues 87.713 73.377 19,5% COGS -62.770 -52.111 20,5% Staff -13.936 -10.402 34,0% Other Operating Expenses -7.849 -7.576 3,6% EBITDA 3.158 3.288 -4,0% Depreciation and amortisation -1.461 -1.189 22,9% EBITA 1.697 2.099 -19,2% Impairment adjustment goodwill Turkey -1.100 Amortisation of goodwill -1.324 -1.050 26,1% Profit from Operations/EBIT -727 1.049 - ~
* The business unit ITD (PC and Hardware distribution) was sold
Total sales per region in EUR 1,000 for the six months period ending
June 30, 2003 and 2002
~
2003 2002 +/- %
Adriatic 26.476 30.918 -14%
South 27.336 6.847 299%
Cyrillic 10.448 13.503 -23%
Central 22.148 21.184 5%
86.408 72.452 19%
~Adriatic: Slovenia, Croatia, Bosnia-Herzegovina, Macedonia, Serbia and Montenegro Central: Czech Republic, Hungary, Poland, Slovakia Cyrillic: Russia, Ukraine, Moldova, Latvia, CIS South: Bulgaria, Romania, Turkey, Greece, Malta, Cyprus
Outlook As in previous years, it can be assumed that after an average 3rd quarter a strong 4th quarter will follow. Due to the advancing integration of the Fujitsu Services subsidiaries, a positive impact on gross margins can be expected, as the percentage of total sales derived from services will increase. The exploitation of synergies (office mergers will be completed by the end of 2003) is also expected to reduce the burden on the cost side.
Management expects that the Turkish subsidiary will reach break-even at the end of 2003 after the started restructuring measures have been completed.
In the longer term, promising economic growth rates in Central and Eastern Europe as well as EU enlargement will lead to greater IT investments. S&T's management expects sales in excess of EUR 200 million in 2003.
Conference Call S&Ts management is available for a conference call on July 23 at 4.00 p.m. Central European time, UK: 3.00 p.m., US: 10.00 a.m. Eastern time. To take part in the conference call, please dial 0049 69 509 573 747 a few minutes prior to the start time. For your convenience, an instant replay will be available from July 23 at 6.00 p.m. Central European time. The replay telephone number is: 0049 69 50 957 9999 and the conference reference number is 23 70 51. If you have any questions please call 0049 69 50500600 for assistance.
Disclaimer This Information reflects the situation of S&T as per December 31, 2002. The Information contains certain forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, financial condition, performance or achievements of S&T, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: - competition from other companies, - changes in operating expenses, - attraction and retention of qualified employees, - uncertainties arising out of S&Ts operation outside Austria, - adverse changes in applicable tax laws, - adverse changes in governmental rules and fiscal policies, - civil unrest, - acts of God, - acts of war, and - other factors referenced in this Information. Given these uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements. No representation or warranty can be given, expressly or implied, regarding the correctness, completeness or fairness of information and opinion regarding such forward-looking statements contained in this Information. S&T disclaims any obligation to update any such forward-looking statements to reflect future events or developments. S&T and the persons acting on behalf of S&T do not accept any liability whatsoever arising from any use of this Information or its contents or otherwise arising in connection therewith. This Information does not constitute an offer or invitation to subscribe for or purchase any securities of S&T.
About S&T S&T is a leading provider of IT solutions for customers in 19 countries in Central, Eastern and Southern Europe. The company advises, develops and implements customised IT solutions and also offers round the clock service support. S&T has in-depth problem solving and service expertise for mission-critical applications with a specific concentration on the needs of large and medium-sized enterprises, in particular telecommunications companies, banks, power companies, the government and health care sectors.
end of announcement euro adhoc 23.07.2003
Further inquiry note:
Karl Tantscher
Chief Executive Officer
mailto:karl.tantscher@snt.at
Henriette Lininger
Investor and Public Relations
mailto:henriett.lininger@snt.at
S&T System Integration & Technology Distribution AG
Gunoldstrasse 16, 1190 Vienna, Austria
Phone: +43 1 367 80 88 0
Fax: +43 1 367 80 88 99
mailto:snt@snt.at
http://www.snt.at/
Branche: Computing & Information Technology
ISIN: AT0000905351
WKN:
Index: ATX Prime, NECI, ViDX
Börsen: Wiener Börse AG / official dealing
Nasdaq Europe / official dealing